Virgin America has expanded its existing 12-year OnPoint solution agreement to include its newly ordered 60 CFM56-5B engines that will power its A320 aircraft. The expanded service agreement is valued at more than $320 million dollars over the life of the contract.
In addition Virgin America signed Rate per Flight Hour (RPFH) agreement with CFM International to support 60 LEAP engines the airline ordered to power its new Airbus A320neo aircraft. Under the terms of the comprehensive services and support agreement, which is valued at approximately $400 million over its 12-year term, CFM will guarantee engine maintenance costs on a dollar per engine flight hour basis. Virgin America is the launch customer for CFM’s advanced new engine scheduled to enter service on the A320neo in 2016.
